On January 3, 2021 ABC acquired 90% of DEF at book value. The following information is available:2022202130,000Inventory, Dec. 31Intercompany cost of sales20,00060,00060,000120,000225,000Downstream Sale100,000200,000Net income – DEFNet Income - ABC550,000500,000Compute for the Profit attributable to Equity Holders of Parent or Controlling Interest in Net Income for2022.

Consolidation is termed as merger of two or more entities where one company acquire more than 50% of…

Answered: Compute for the Profit attributable to…

Business

Accounting

Compute for the Profit attributable to Equity Holders of Parent or Controlling Interest in Net Income for 2022.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

On January 3, 2021 ABC acquired 90% of DEF at book value. The following information is available:
2022
2021
30,000
Inventory, Dec. 31
Intercompany cost of sales
20,000
60,000
60,000
120,000
225,000
Downstream Sale
100,000
200,000
Net income – DEF
Net Income - ABC
550,000
500,000
Compute for the Profit attributable to Equity Holders of Parent or Controlling Interest in Net Income for
2022.

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